International Journal of Advanced Research in
Management and Social Sciences
ISSN: 2278-6236
EXPLORING FACTORS AFFECTING THE ADOPTION OF IPTV: A LITERATURE
REVIEW
Samiran Sur*
Dr. (Mrs.) Mrinalini Pandey**
Abstract: The evolution of Internet Protocol Television (IPTV) is quickening worldwide and
provides substantial revenue opportunities depending upon user acceptance. Therefore, user
acceptance of IPTV becomes an area of interest for IPTV service providers. This study
reviewed different prior studies to investigate the driving forces of users’ adoption of IPTV.
Analyzing IPTV as a hedonic IT system, this paper emphasizes the importance of users'
perception of IPTV-specific factors through technology acceptance model (TAM).Technology
Acceptance Model is widely used to access users’ usage in various information system fields.
Learning the vital role of TAM can guide research workers to design different users’ interface
for different online consumers and accordingly achieve high user use in various application
areas. The application areas of TAM are elaborated including individual and organization
adoption, electronic service, mobile data service, self-service technology, electronic learning,
World Wide Web, intranet, electronic commerce, online shopping and so on, but limited
number of research was done to explain the acceptance factors of IPTV through TAM. We
discussed the related studies to understand important factors for using and accepting IPTV
indifferent corner of world. Further this study will help to implement IPTV successfully in
India.
Keywords: Internet Protocol Television (IPTV), Interactivity, Technology Acceptance Model,
Addressable advertising, Interactivity.
*Assistant Professor and Research scholar, Haldia Institute of Technology, West Bengal,
India.
**Assistant Professor, Indian School of Mines (ISM), Dhanbad, Jharkhand, India.
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INTRODUCTION:
IP (Internet Protocol) and TV (Television) both are the two elements of Internet Protocol
Television (IPTV).IP allows transferring information (data) to a point which is addressed
earlier. Except the addressed point, no one can get this information. On the other hand, TV
is a system where images, videos and sounds are transmitted via terrestrial, cable or
satellite. IPTV is the addition of these two elements and the system is able to deliver video
and sounds together through Internet. So, IPTV system having features of both, Internet and
TV. IPTV is a real time distribution service for multimedia contents (either broadcast or ondemand) over an IP network. IP infrastructure is based on personal choices, depending on
people’s needs and interests (Jain, 2005). Therefore, IPTV has two-way interactive
communications between operators and users, for example, streaming control functions
such as pause, forward, rewind, and so on, which traditional cable television services lack.
Triple play is a service operator’s package including voice, video, and data.
As Technology Acceptance Model (TAM) has introduced for Information system, we can
apply TAM (Davis, 1989) theory for IPTV also. TAM is a leading theory of technology
acceptance in IS research. Lots of empirical study has indicated that TAM is a parsimonious
and highly fitted model of technology acceptance behaviors in a large variety of
IS(Information System).The original TAM model proposed by (Davis, 1989) don’t adapt fully
to the area of IPTV, because TV broadcast provide fun and usefulness at the same time.
Subscribers of IPTV will expect to get information, amusement, and enjoyment at anywhere,
anytime and in any devices. These intentions are different from Information system ones
that is increasing performance (Shin, 2008).
RESEARCH METHODOLOGY:
For this research, academic and professional literature of leading telecom publications and
organizations were studies to identify issues of importance relating to the subject. The
research media will mainly come through Internet-based resources and IT Trade periodicals.
As IPTV is relatively new concept, there is limited availability of IPTV literature in libraries
outside of periodicals. Systemic and relative analysis and generalization of scientific
literature were applied while theoretical studies of IPTV, TAM and interactive marketing
were carried out.
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International Journal of Advanced Research in
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ISSN: 2278-6236
IPTV:
Now a day’s two main models of deployment of television are available: 1) The traditional
broadcast model like cable TV and satellite TV, and 2) A new model, where the TV program
distribution developed to a mixture of “linear” and “nonlinear” / “on demand” system in the
IP networks with crucial element of interactivity and with new business models, where the
television service provider have direct access to the end users (Tadayoni, 2006).
There are several IPTV service definitions exists. Some of these are given below.
1. “IPTV can be tentatively defined as a service that delivers media such as video via a
network in real-time, or is used to retransmit stored media.”(Lee, 2009).
2. “Digital video content, including television, which is delivered via the Internet Protocol
(IP).” (Held, 2007).
3. “Delivery of digital television and other audio and video service over broadband data
networks using the same basic protocols that support the internet.” (Cooper et al.
,2006)
IPTV HISTORY:
Video distribution for PCs using the internet, started approximately in 1998. The name of
this service was internet streaming. Internet streaming was an advanced service as it
allowed for real-time video frames (Yamamoto, 2009).
The IPTV concept came-out in 1995 for the first time. In 1998, the AudioNet company
initiated the first live webcasts with TV programs. In 2001, Kingston Communications was
one of the first companies to introduce IPTV over ADSL and in 2003 Total Access Networks
Inc. releases its IPTV service consisting 100 free access channels. In 2006, AT&T launched in
US an IPTV service, named U-Verse, with more than 300 channels in 11 different cities. In
2009, AT&T announced the introduction of more than 100 HD TV channels(Rodrigues,
2010). Later it was introduced in Japan, Korea, China, India and in many more countries.
A recent study (Whitney, 2006) shows that there is a relationship between Television
programming with a large number of household product positioning and the desire to
remodel one’s house. Mobile TV has the potential to modify the recent market for cellular
services. Two future paths and scenarios are suggested; one where mobile TV is transmitted
primarily over a dedicated broadcast network similar to conventional TV today. The other is
a solution that uses the existing cellular networks that with some upgrades could support a
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International Journal of Advanced Research in
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ISSN: 2278-6236
“broadcast-like” service where broadcasters and carriers can collaborate on technical hybrid
solutions with broadcast streams being synchronized with mobile Internet usage (Bria,
2007).
Moote(2006) addressed that, basic difference between Internet TV and IPTV is that Internet
TV allows access to content everywhere. Whereas IPTV is distributed within a closed
environment, such as a city or regional area like a sub-division, basically a private network,
which allow for restricted access of content in a close network. IPTV systems are changing
the style television is broadcasted and used, offering large advantages to TV broadcasters
and users. It is not only the little distribution and transportation costs, but also the
possibility to offer distinguished interactive services (Rodrigues, 2010). Karantanis (2009)
considered six domains for IPTV value chain, namely, Consumer Domain, Network Provider
Domain, Platform Provider Domain, IPTV service Provider Domain, Content Provider
Domain. Four different business models also proposed, namely, Triple play offerings
(Traditional Triple Play, Hybrid Triple Play); IPTV bundled with VOD, VOD-only business
model, Combination of IPTV-Internet TV business model.
Bouwman (2008) described two types of drivers, Technological drivers (an increase in
effective distribution capacity, an increase in the ability to process user feedback, an
increase in the storage and processing power controlled by viewers, and the separation of
applications from transport) and Market drivers / Commercial drivers. Market drivers may
be type of market demand, Convergence of Information and Telecommunication and TV
industries, and competition. Different types of domain are incorporated within the IPTV
business model such as service Domain, technical domain, organizational domain and
financial domain etc.
Future effect of IPTV on the industry can be categorized into three areas:
Content - Availability of more content with easier access will be the main objective,
Convergence - IP network will permit one application programs to be run over multiple
end‐user devices, in a single service network. Interactivity– The both‐way type of the IP
network will enable interaction among users, content providers, broadcasters and
advertisers (BSF Broadband, 2006).
IPTV service providers need to have access to pleasing content to compete with cable and
satellite pay TV providers (Thomson, 2006). By the advent of IPTV, users who used to be
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‘passive viewer’ of the program of traditional television now became ‘active selectors and
users’ of varied contents of IPTV (Kim and Kim, 2009).
IPTV ADVERTISING RELATED RESEARCH:
IPTV advertising has some inherent features like addressability, interactivity and
measurability. TV advertising can be energized by IPTV, by using those features.
Addressability: Every internet subscriber has unique IP address. Using this notable attributes
targetable advertisement is possible. Set-top-box is that equipment which allows reaching
of specific content TV. A TV (generally known as smart TV) itself also can be an IP end-point.
Due to its inbuilt addressability feature many hundreds or even thousands of IPTV
advertisements can be broadcasted simultaneously during a single timeslot and can be
targeted to large peoples, small groups or even individuals, and for viewers’ responses to be
collated (Hart, 2008). Advertiser need to decide whether the advertising content is
appropriate for the recipient or not. It allows telecom operators to control where the ads go
to, aim the major or minor groups, or even sets within a family. The ads can be calibrated to
the people within a family who are most likely to be viewing at a certain time (Sur and
Pandey, 2011).
Interactivity: One of the distinguished features of IPTV is its interactivity. Interactive TV will
add services not yet delivered such as time shifting , Video-on-demand, network-based
Digital Video Recorder (DVRs) , where the content is potentially stocked on the network and
streamed to the device wherever it might be (Akerkar, 2010). Recently, a series of studies
into interactivity were conducted (Rafaeli, 1988; Steuer, 1992; Zack, 1993; Ha and James,
1998; Liu and Shrum, 2002; Stromer-Galley, 2004; Johnson, 2006). Previous research into
interactivity has focused only on cognitive area, and individual features such as trust and
emotion were not studied prominently (Shin, 2011), and the reason was predominant TAM
approach (Davis et al. 1989).
Measurability: Since IPTV technology permit feedback data to be received from a television
household, real-time viewer measurement is possible. The study on return response can
prove return on investment (ROI). IPTV advertising provides a new channel for user
knowledge opportunities.
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TECHNOLOGY ACCEPTANCE MODEL (TAM):
IPTV has characteristics of both information and media technology, for this reason we can
say it’s a convergent of those two technologies. It broadcasts different contents to
subscribers via IP network. Moreover, users can use telecom services with same terminal. As
such, IPTV using intent should be described in part by the technology acceptance model,
TAM(Davis, 1989). TAM is a leading theory of technology acceptance in IS study. Large
numbers of empirical research have established that TAM is a robust model of technology
acceptance behaviors in a broad variety of IT. TAM hypothesizes the effects of external
factors on intention to use by perceived usefulness (Gefen, 2003; Talyor and Todd, 1995b;
Shin, 2008) and perceived ease of use (Venkatesh and Davis, 2000). TAM has been
demonstrated its robustness through a range of empirical research in IS study (Davis et al.
1989; Legris, 2003) and applied across a variety of IT areas.
Original TAM model proposed by Davis (Davis, 1989) don’t adapt the field of IPTV in full,
reason is that TV broadcasts provide playfulness and usefulness at the same time. That
means, subscribers of IPTV will expect to get entertainment information at anywhere,
anytime, and any devices. These purposes are dissimilar from increasing performance. To
suggest extended TAM model for Mobile IPTV, Shin (2008) added extra factors as flow
experience, perceived enjoyment, perceived loss, and social norm.
Figure 1. The Technology Acceptance Model (TAM) (Davis, 1989)
The original factor Perceived ease of use (PEU) was defined as “the degree to which a person
believes that using a particular system would be free of effort”. Perceived usefulness (PU) was
defined as “the degree to which a person believes that using a particular technology would
enhance his or her performance” based on the definition of TAM study (Davis, 1989). As per
previous studies, PEU and PU were directly or indirectly associated to Behavioral Intention (BI)
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(Davis, 1989; Karahanna, 1999; Venkatesh and Morris, 2000; Moon and Kim, 2001). In the case
of mobile IPTV, efforts saved because of improved ease of use will enable an individual to use a
newly service conveniently and frequently and user’s sense of efficacy and personal control is
proportional to use of easier technology (Shin,2008).
Perceived enjoyment can be defined as the degree to which a user perceives a system to be
enjoyable in its own right after using it (Davis, 1989; Karahanna, 1999; Morris& Dillon, 1997;
Segars& Grover, 1993; Yi & Hwang, 2003). Previous TAM research exposed that enjoyment is
one of the most important factor of intention (Sun & Zhang, 2006a, 2006b; Yi & Hwang, 2003).
Moreover, key purpose of TV is pleasure and enjoyment. Many research demonstrated that
perceived enjoyment positively affected a user’s attitude (Shin, 2008).Particularly, in case of
interactive TV, TV features are enjoyment of using and ease of inducing interest (Kim& Moon
2001).They also proposed the `playfulness' concept as a person's intrinsic salient belief to
describe the individual's intrinsically motivated behaviors. Perceived enjoyment is one of the
salient factors of an IP TV service (Choi, 2010).
Some researchers have shown a negative relationship between price and perceived quality
(Dodds, 1991).Online customers were price sensitive. Generally, customers measure the quality
of aproduct or its value by monetary and nonmonetary paid. In the study Theory of Reasoned
Action (Fishbein and Ajzen,1975) introduced an important factor subjective norm, which was
defined as “person’s perception that most people who are important to him think he should or
should not perform the behavior in question”. Many studies after the TRA (Fishbein and Ajzen,
1975) have demonstrated that subjective norm had a straight relation with Behavioral
Intention. Since consumers have never experienced IPTV, this social influence also will affect
behavioral intention (Karahanna, 1999).Another study (Shin,2008)showed that prior
experiences of service, affect on service adoption procedure and prior services’ similarity of
new service also affect on service adoption.
TAM II was introduced in 2000 (Venkatesh and Davis, 2000; and Venkatesh, 2000), a new
edition of original TAM. Social influence (subjective norms) and Cognitive Instruments (job
relevance, image, quality, and result demonstrability)was introduced
Davis,2000) as external variables of PU, whereas
(Venkatesh and
anchor (computer self-efficacy,
perceptions of external control, computer anxiety, and computer playfulness) and
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adjustments (perceived enjoyment and objective usability) was introduced as external
variables of Perceived ease of use(PEOU)(Venkatesh ,2000).
Figure 2. The Extended Technology Acceptance Model (TAM2) (Venkatesh and Davis, 2000)
Playfulness and personal innovativeness have important effects on cognitive absorption
(Agarwal and Karahanna ,2000). Study of Gardner (2004) analyses the individual acceptance
and usage of a website through extension of the TAM and they added two new constructs:
perceived entertainment value and perceived presentation attractiveness. Where perceived
usefulness, perceived entertainment value and website revisit has significant relation. This
study showed that in case of website usage perceived usefulness and perceived
entertainment value both are important factors.
Men’s decisions were strongly determined by their perceptions of usefulness; whereas, ease
of use and subjective norm were more important for women ( Venkatesh and Morris, 2000).
Usage of certain technology is mandatory for their employees in certain companies.
However, some individuals will not agree to adopt such rules. Venkatesh & Davis, (2000)
observed that voluntariness has an effect on the subjective norm on intention to use.
Hence, behavioral intentions vary within mandatory and voluntary usage(Gardner, 2004).
TAM RESEARCH ON IPTV ADOPTION:
Ha (2009) pointed out that attitude, subjective norm and perceived behavior control that
three factors influencing behavior intention. They also elaborated the TAM to the
interactive TV based shopping, T-commerce. The results demonstrated that perceived
enjoyment is the most influencing factor affecting attitude and behavioral intention towards
T-commerce. Hence, the TAM is suitable for examining acceptance of IPTV. It is assumed
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that Perceived price level and perceived enjoyment is will to play the most significant role in
TAM acceptance (Weniger, 2010).
Davis (1989) defined Perceived ease of use as "the degree to which a person believes that
using a particular system would be free of effort" and Perceived usefulness as "the degree
to which a person believes that using a particular system would enhance his or her job
performance" in original TAM study. Whereas Ha (2009) defined, PU is as “the degree to
which a person believes that using IPTV would enhance a person’s performance without
regard to time and space”, and PEU as “degree to which a person believes that using IPTV
would be free of effort”. Similar to the original TAM, they also demonstrate a positive
relationship from PEOU and PU to attitude toward IPTV.
Another study (Shin, 2009) incorporates perceived enjoyment to the TAM model. In addition
to perceived usefulness and ease of use, perceived playfulness, content quality, system
quality, internet experience and perceived price level are also employed (Cheong and Park,
2005).
‘TV viewing habit’ factors and 'Internet use habit' factors has been generally used to
describe current media usage instead of new media adoption (HA, 2009). He also added
since IPTV is convergence of TV and the Internet, they assumed that IPTV acceptance
intentions would be also associated to habitual uses of TV and/or Internet. Thus, both ‘TV
viewing habit’ factors and ‘Internet use habit’ factors, considered as critical aspects as to
viewing IPTV or not. Their result showed that entertainment is stronger indicator than
information motivation is in perceived usefulness of IPTV. The results of another study
(Shin, 2011) evidently demonstrate that the trust and emotion of consumers should be
considered from the MIS perspective in order to build user intentions to use the product.
Similarly, other research ( Fogelgren-Pedersen, 2005) has shown that stability of connection
and geographical coverage are important factors of perceived relative advantage in wireless
broadband. The perceived enhanced utility of mobile services is a powerful variable
motivating use of t-commerce. Though these researches demonstrated important perceived
variables, they still did not find factors particular to convergence technologies (Shin,
2009).He also added IPTV is a simpler system to use, and it is guessed that IPTV, as a
variation of the Internet, presents little difficulty to consumers. In addition, because IPTV is
a variety of television that provides enjoyment, interest, and pleasure.
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Perceived usefulness is defined as a type of extrinsic motivation and enjoyment asa type of
intrinsic motivation (Davis, 1992). Recently Heijden (2003) found that perceived enjoyment
as a hedonic purpose powerfully influenced Web usage for entertainment purposes.
Extrinsic motivational factors on the behavioral intention have more influence for the
experienced people than the inexperienced people and the influence of intrinsic
motivational factors on the behavioral intention are more powerful for the inexperienced
people than the experienced people (Choi, 2010). This study also identified four significant
intrinsic motivational factors – ease of use, enjoyment, usefulness, and trialability – in the IP
TV adoption behavior.
Some researchers advocated on Perceived content quality also (DeLone and McLean
,1992).The information quality is an important factor for building successful IS.
Perceived content quality along with other constructs was examined in evaluating Webbased reference systems (Shin, 2009).They found perceived content quality to be one of the
important factors in the use of the reference systems. Recently, another study (Cheong and
Park, 2005) employed perceived content quality to the acceptance model of mobile
Internet. They showed content quality is a significant factor in the adoption of that
technology.
Again some researchers said on Perceived system quality. Many individuals become
reluctant to use IS when they experience delays in reply, frequent disconnection, limited
access, and poor security and this is why it is an important construct. Also information
quality, response time, and system accessibility as IS qualities and they said that these
variables are useful predictors of perceived ease of use and perceived usefulness (Aladwani
and Palvia,2002). Perceived system quality has positive causal relationships perceived
usefulness (Cheong and Park, 2005).
Normative pressure is another important predictor which was revealed in studies based on
the IS perspective (Hung, 2003). People often use technology in a social context in which
they notice others’ interaction and in which they must adapt to others’ activities (Shin,
2009). Farther headed perceived cost variable as a significant predictor in developing the
intention to use IPTV. In the construction of behavioral intention, subscribers compare the
benefit from the service to the cost of utilizing the service. If the price exceeds the gain, they
do not use the service. Though IP TV service has potential to become a crucial IT in the
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future, only a few studies have been conducted related to adoption behavior for an IP TV
service. IP TV services can easily go wrong if its service providers do not realize what users
want from it (Choi, 2010). IP TV service has unique features of public utility and interactivity.
Unlike conventional information systems (IS) used in organizational environments, television
media do not target a particular group but tend to be shared by users in family
environments. Because of this feature, IP TV service is dissimilar from conventional IT, in
that its intention is not productivity.
MAJOR LIMITATIONS OF TAM STUDIES:
Self-reported usage is the most commonly reported limitation, most analysis trusted mainly
on self-reported use accepting that self-reported usage successfully reflects real usage (Lee,
2003). Though, self-reported usage is known to be subject to the usual method bias
(Agarwal and Karahanna, 2000), which distorts and magnify the causal relationship among
independent and dependent variables ( Podsakoff and Organ, 1986). The use of student
subjects is another limitation and can affect on generalizability of the findings. The major
problems of TAM studies are low explanations of variance (Lee, 2003).
IPTV service using a traditional TAM has some limitations in explaining IPTV subscribers’
behavior, because an IP TV service is used in a different context and for a different intention
than new technologies in a work environment (Choi,2010). Though there are various
moderating factors, users’ prior experience has been detected as an important factor in
their behavior (Gefen, karahanna & Straub, 2003a; Taylor & Todd, 1995; Thompson, Higgins
& Howell, 1994),the reason is experience has a strong consequence on determining attitude
(Venkatesh, 2000).When experience increased, users have more familiarity with and
knowledge about technology( Fishbein & Ajzen, 1975; Sun &Zhang, 2006b) and which can be
change to different adoption behaviors.
LIMITATIONS:
As IPTV is still in nascent stage, various region has different infrastructure so getting the
generalize behavior may not be possible. For this study, IPTV related data were gathered
from different websites. As this study constructed on secondary data so there is the obvious
chance that industry has undergone certain changes in the form of up gradation new
research. Certain features of IPTV related data might not have been included in this study
because all research data might not be available in web.
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CONCLUSIONS:
Generally, IS system use in the work may become more routinized as experience grows, in
the event of an IP TV service, growing experience increases the function of perceived
enjoyment, because the service is primarily used to enjoy time instead of perform tasks
(Choi, 2010). Enjoyment creates a less cognitive load because the users are feeling pleasure
from the action and is willing to spend more effort on it(Sun & Zhang, 2006a, 2006b). TAM
has tested to be an important theoretical model in helping to interpret and explain usage
behavior in the IS implementation. In this article, we discussed the related research with
Technology Acceptance Model and IPTV. Learning the vital use of Technology Acceptance
Model can lead to research design on various users’ interface for different online consumers
and in different application areas. This study reviewed a number of studies (from 1975 to
2011) to understand the relation between IPTV adoption behavior and Technology
Acceptance Model. We discussed the related research to clarify the extension of Technology
Acceptance Model.
The future research may be extended using technology acceptance model to assess the IPTV
technology contexts including 4G mobile data service, e-learning applications and hotel and
hospital applications and so on.
IMPLICATIONS FOR BUSINESS MARKETING PRACTICE:
As IPTV is still in nascent stage, various region has different infrastructure so getting the
generalize behavior may not be possible. The future research may be extended using
technology acceptance model to assess the IPTV technology contexts including 4G mobile
data service, e-learning applications, hotel and hospital applications and so on. Depending
on targeted advertising, further the concept of behavioral targeting can be constructed,
based on customers’ behavioral attributes like interests, customers’ preferences, lifestyle,
etc.
Managerial implications on the topic can include the matching criteria of demographics’
choice and advertisement’s content. If the system can provide individualized ads to each
participant, the ad-consuming rate may increase. Therefore, an interactive advertising
platform that comprises this function can be counted a future work. Additionally when too
many players will present in the market what will be the sustainable growth factor or what
will be important customer retention factors.
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The managerial implications of this research to the developing IPTV industry are several, as
follows:
1. Identification of advantageous combinations of services, pricing options which
improve the customer experience, and promote the customer’s tendency to buy
additive services and stay with the provider longer.
2. Assistance in developing effective marketing strategies which are more consumercentric and therefore increase consumer satisfaction.
3. Assisting providers in developing innovative, value-laden, consumer-centric business
models which maximize consumer satisfaction and ultimately, company financial
performance.
4. It will provide a brief idea to Indian IPTV service providers, about recent IPTV market
status and challenges of it.
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